Information about car, auto, motor and lorry insurance
Car Insurance : all you have ever wanted to know and even more. Find out !
10 tips for lowering your insurance costs and damages
In modern society who can afford to be not insured and run the risk of bankruptcy due to a simple collission with a very, very expensive car like a Ferrari for example ? Most people can’t and need insurance to stay happy and financially healthy. But there are some things you can do for which you don’t have to pay and that will save you money. Read our 10 tips for lowering you insurance costs and damages.
Americans have a love affair with cars, and since Americans own more cars per capita than any country in the world, a good place to begin examining insurance risks is to look at those associated with the ownership, maintenance, and use of our beloved PTV (personal transportation vehicle). Unless you walk around with a loaded gun in your pocket, an automobile represents the most dangerous device you own. In one split second, you can experience lawsuits, death, long-term disability, major medical expenses, and major property darnage ! Pretty scary stuff! (source: Insurance for Dummies).
Americans and their cars
An accident is an unexpected, unforeseen event not under the control of the insured and resulting in a loss. The insured cannot purposefully cause the loss to happen; the loss must be due to pure chance according to the odds of the laws of probability. For example, under a PERSONAL AUTOMOBILE POLICY (PAP) if an accident occurs, the insured is covered for loss due to his/her negligent act or omissions resulting in bodily injury or property damage to another party (source : Dictionary of Insurance Terms)
What is an accident ?
Insurance and car rental
Renting a car, whether for business or for pleasure, puts you face-to-face with risks that your Personal Auto policy sometimes does not cover. Here are the four main sources of liability you face when renting a car:
• You have direct liability for injuries or property damage that you cause to others while operating the rental car. If you run a red light and injure others or damage their vehicle, for
example, you're at fault and responsibIe. No surprises here.
• You are directly liable for damage to the rental car that you cause by your negligent driving. If you run a red light and damage the rental car, for example, you're responsible for the
repair costs.
• You are responsible for damage to the rental car - damage that you did not cause but for which you agreed to be responsible when you signed the rental contract. Every rental contract I have ever looked at makes the renter absolutely liable for all damage regardless of fault! This clause has always been non-negotiable.
This means that you are responsible for damages such as hall damage, someone else running a red light and hitting you, someone vandalizing the car by keying it, or someone hot- whiring the car and stealing it. In short, if you return the car with any darnage at all, you owe. With the cost of new cars today, that could mean more than $25,000 if the car is totaled or stolen.
• You are liable for the loss of revenues the car rental agency suffers as a resuIt of the car being unavailable to rent while being repaired. Again, you will owe this loss-of-revenue regardless of whether you actually caused the damage. You agree to be responsible when you sign the contract.
Here's a tip for the car rental industry: If you want to attract new customers, offer more reasonable contracts. (source: Insurance for Dummies)
10 tips to lower your insurance costs
Special Auto | Car Insurance Situations
Financial consequences of liability
1. Obey traffic laws, including the speed limit - laws designed to reduce both the
frequency and severity of automobiIe accidents.
2. Perform regular safety maintenance of your vehicle (brakes, tires, steering, lights).
3. Purchase a safer vehicle that is highly rated for low damageability and
passenger safety.
4. Pay extra for added safety features like air bags or antiloek brakes.
5. Always wear your seat belt and insist your passengers do too.
6. Buy the highest-rated child safety seats and always use them.
7. Take behind-the-wheel defensive driving classes.
8. Require your teenager to have at least 30 hours practice behind the wheel on his
permit under all sorts of driving conditions before allowing him to get a driver's
license. No one can ever develop the skills needed to be a safe driver in just a few
hours of mandatory driver's education.
9.Allow your teenager to drive based upon your determination of his or her ability to
responsibly operate a car - regardless of when your state says your teenager can
drive. The teen who behaves immaturely and irresponsibly out of a vehicle usually
behaves in similar fashion in a vehicle.
And last, but not least :
10. Get well informed and buy Insurance for Dummies : for a few lousy dollars you can save
loads of money ! Click on the picture below !
The financial consequences of liability can be enormous. Let’s look at a small example : you are in your car en drive right into a car, seriously injuring the other driver. The driver is taken to the hospital, undergoes emergency surgery, spends a month in hospital and spends two years in rehabilitation, missing 2 years of work. Do you know what that will cost ? A lot and is also depends on the persons occupation / personal income situation what it will cost you. Examples:
A teacher : $ 100.000 (medical bills) + $ 60.000 (lost wages) + $ 300.000 (pain/suffering) = total claim = $ 460.000. But for a docter you pay $ 100.000 (medical bills) + $ 300.000 (lost wages) + $ 500.000 (pain)=total claim = $ 900.000.
Unfortunately the insurance business is a bit complex. Fortunately we are here to help you make sense of all those difficult insurance and legal terms. Based on renowned literature we try to help you understand special insurance situations. We will try to help you find your answers. Dealing from auto insurance until liability issues and forms to fill out. Insurance is a financial instrument - nothing more, nothing less - that plays a critical role in both personal and business financial planning. Click here to go to the main special auto insurance situations.
Insurance for dummies
One of the main sources of this website is the very informative book ‘Insurance for Dummies’ by Jack Hungelmann, Packed with real-life examples, expert author Jack Hungelmann guides the reader through the traps and loopholes of the insurance system. Discover what policy combination is best for your needs and where you may have gaps.Find out how to reduce your risk and your insurance costs. Learn how to make the most of your insurance policies and what to do when there's a crisis. Click on the picture to see the special price for this book and order online
